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Examinations were held in the following grades: First-class marine engineer, second-class marine engineer, third-class marine engineer, river engineer for steam-vessels, first-class marine engineer for auxiliary-powered vessels, second-class marine engineer for auxiliary-powered vessels, and river engineer for auxiliary-powered vessels. A return giving names of successful candidates is appended. Examination of Masters and Mates. The number of candidates who sat total 118; of this number forty-four failed. The difficulty of getting properly certificated second mates for sailing and auxiliary-powered ships still continues, and there does not appear to be much prospect of an improvement in the near future. There has also been some difficulty in getting certificated men for small launches, but I think this will soon disappear, as the men from the front are now resuming their civil occupations. The examinations for masters and mates are carried out in Auckland by Captain Dykes, the Examiner who is stationed there; at Wellington by Captain Whiteford; and at Lyttelton by Captain Whiteford, who goes there for the purpose when required. The following report on the work of examination of masters and mates is made by Captain W. Whiteford, Acting Principal Examiner : — " The examination work has been carried out at Auckland by Captain Dykes, and at Wellington and Lyttelton by myself. A few candidates for river master have also been examined by the Harbourmaster at Gisborne, and by Captain Lake at Napier. " The new regulations are now well understood, and candidates are showing a good knowledge of the new syllabus for foreign-going certificates, which includes spherical and plane trigonometry, meteorology, elementary science, naval architecture, a better knowledge of navigation, and the usual seamanship. With the mark system the examination is an excellent test of a candidate's practical knowledge, and good men who through nervousness in the examination-room often failed two or three times now have no difficulty in passing the first time. The examinationrooms in Wellington and Lyttelton are now up to date, and I am sure both the examination and the rooms will meet with the approval of the Principal Examiner of the Board of Trade when he inspects them during his colonial tour. " A Morse-flashing machine will shortly be installed in each examination-room, which will eliminate the personal equation so prevalent during an examination in Morse signalling when the candidate and the examiner are in one room. "By the inclusion in the syllabus of the 'General Notices' published in the Notices to Mariners candidates are required to keep pace with the times by having a knowledge of such subjects as wireless direction-finding, wireless time-signals, collection and distribution of meteorological data by wireless, and treatment of influenza. " All examinations with the exception of that for river master have been discontinued at Dunedin. " Two candidates failed in colour vision, and one in form vision. "A return giving names of successful candidates, &c, is appended." Deceased Seamen's Estates. The estates of sixty-one seamen have been dealt with during the year. The amount received on account of them was £1,139 7s. 7d., and the amount paid to relatives and other claimants £844 18s. Bd. The sum of .£49 10s. Bd. has been paid into the consolidated revenue for estates unclaimed for over six years. Appended is a statement of the estates. Wrecks and Casualties. During the year sixty-five inquiries were held, fifty-four of them being preliminary inquiries and eleven Magisterial. The appended return shows the casualties and an analysis thereof. Those on or near the coasts of the Dominion were sixty-three, of 54,778 tons register, as compared with fifty-six, of 28,659 tons, in the previous year. The number of lives lost was nineteen, as compared with thirty-six in the previous year. ' Eight were lost through the destruction by fire of the s.s. " Tainui "; the missing cutter " Janet " had ten on board, five being passengers; and a passenger disappeared from on board the s.s. " Mako " when off Hicks Bay. Mercantile Marine Offices. The work of these offices has been carried out in a very satisfactory manner, and the Superintendents and their staffs are deserving of commendation for the way in which they have carried out both their ordinary duties and special duties which have been placed upon them in consequence of the war. Owing to the increase in the work of procuring seamen at Wellington an Assistant Inspector of Seamen has been appointed at that port. The Department has had to withhold the discharge of a good many seamen who have deserted from or failed to join their ships. Appended is a statement showing the number of seamen engaged and discharged at various ports during the year, and the fees received for engagements and discharges. The number engaged was 21,094, and the number discharged 20,553. The fees received amounted to £2,809 15s. During the previous year the engagements were 20,459, and the discharges 19,663, the amount of fees being £2,463 Is. 6d. The transactions at the principal ports were— Engagements. Discharges. £" ' Auckland ... 6,723 6,627 904 2 6 Wellington 7,790 7,481 1,054 9 6 Lyttelton 2,102 1,888 284 5 6 Dunedin and Port Chalmers ... ... 2,272 2,470 298 19 6